- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen and thank you for standing by for Waterdrop Inc.'s Third Quarter 2022 Earnings Conference Call. [Operator Instructions].

As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to Ms. JJ [ph]. proceed. Please

Unidentified Company Representative

provision joining the XXXX forward-looking Act discussion under Safe for Please conference statements of third Private the that U.S. note today Harbor XXXX. Waterdrop's you Litigation earnings quarter call. made Securities Thank and the Reform of will contain

company does any for discussion release refer undertake filings this applicable results not Potential forward-looking Please not Forward-looking are statements, obligation earnings public includes any The risks on law. may a but to are reconciliation actual and to, risks except of materially call under those from our measures. our that may and update uncertainties the certain between statements differ uncertainties non-GAAP our as non-GAAP limited [indiscernible] to required to cause subject GAAP. SEC. to with current expectations. include Also, and

are Joining a and and Co-Founder, Shen Mr. Peng, us our Mr. remarks. Guang, and [ph]; VP; and [indiscernible], the Hu Mr. Crowdfunding Director and on section Manager Chairman will Partner Yang of General Director the CEO; Cui VP. [ph], available [ph], the Secretary General Co-Founder, Xiaojiao Medical Manager VP; today They be for Day Richard Mr. after call and Founder, the and Services; of Yao, Partner Board Mr. Patient Markets Chen Q&A Insurance

Please Shen I Now, to over would like to go ahead. Peng. call CEO, Mr. turn our the

Shen Peng

you Thank call. everyone. for Hello, conference quarter joining third earnings our XXXX

will industry. solid and and consumption, good rebound a Nonetheless, value economy. cycle to risks recovery we seen momentum increasing pharmaceutical in a improve quarter-over-quarter fine basis. This business have the downside we and private in global the has recovery. quarter, adaptability the continued increasing support third uncertainty in strong and providing control of business growth XX.X% our third to revenues COVID the the demand that to maintain recently revive in quarter, medical well trend outlook the and on the regarding this the measures tuning economy to the industry During exhibit Against unleash domestic backdrop, believe economic resilience domestic with gained for domestic as the insurance return Waterdrop enable will momentum by as

-- last have steady the entered achieve profitability turnaround reached in in our turnover year, healthy our profitability. quarter year. third a following confirming we level business of a GAAP has managed In profit quarter quarter, final Following our that phase every net to of this of RMBXXX million, the our into of

equivalents short-term the million RMBX.X RMBXXX As third were of cash and our positive cash to account share quarter. investments the in our billion, generate and even increased taking able end of cash into inflow We of September, to a repurchases.

ability generate environment. the to ample positive external to reserves strong Our cash changing and put a withstand cash position in us our flow

Our remarkable the future of and evolving operating demonstrate business X quarters for entered development. results foundation more that past over business we a have growth, phase happier trends a and solid establishing business sustainable into

Our improved operating business quality also efficiency have steadily. and

on the year. on of such, to set management's line of execution. sustainable beginning based determined and time planning and ahead our As healthy commitment this profitability delivered schedule we reflects we strategic the at efficient achieve have This

business achieve efforts, exploring beyond, progress will in pursue to new business these business continue fourth our growth. sustainable new Through make in of we investments and the to aim top healthy into notch businesses to business appropriate and development long-term efforts, our proactively we growth. models Looking quarter steady a reform achieve and deepen while

by perpetrated fraud our have can this of malicious to Shandong AI review crowdfunding medical and together the identify Management developed team, province a Risk subsidiary, unauthorized worked the stringent in and the our at we Through fundraising Waterdrop system committed developed the of Waterdrop is fundraising again of we big process, technologies intermediaries. down by data Medical police end leader ecosystem. our continue crack with algorithms that the months with fundraising activities helped healthy and closely activities instantly police industry, a on-site once evidence and the of unauthorized large crack our solve down take to quarter, August. in to In collected on effectively. the judiciary legal industry and and driving a After hospitals we with which partners of action. case several investigations volume to operations maintaining successfully to the collaborate visits, the Crowdfunding, case development As disciplined

on quarter, crackdown months. the Following measures, our for consecutive deepened our strategy been the various business effective efforts has several there detected marketplace. our reform for third Waterdrop fundraising we In platform activity unauthorized Insurance malicious no to

quality continue results. a to while and innovation. service business upgrade operating we offerings result, strategy technological improved and product adjustments pace our further of us to achieve quality accelerating our This our higher enabled As

proactively We also are in medical pursuing and opportunities industry. broader the health care innovation

ecosystem. with are we X.XX the out quarter, ADSs and recruitment total leveraging repurchased and patient share to high-performing program carried to and the nascent strength and businesses, business existing explore coverage by these lifetime aim Through we in the prudently. service to to our products repurchase continuing we million including continue program efforts, We our users our CRO We of we approximately outreach to In enrich business our continue firmly. which develop. third execute provide our expand our

total September from XXXX, the approximately USD ADSs of million. open we a for of X.X the had As cumulatively repurchased approximately consideration million of market, end X.X

amount USD development. of To confidence maximum the liquidity continue demonstrates we conclude, our our of our September, interest value corporate to This increased environment. will strong with [ph] ample industry our focus maintain sustainable continue long-term our X-year million. this will the announced We in shareholders. In we and the on XX the cap of extension to program, to regardless repurchase repurchase

on have to own confidence and continue industry the a outlook and We development. our patient the

I building continuous [indiscernible] to our the to to remain our user development. new value, business stay the up thereby will Waterdrop Insurance enter We and strengths development business pass solidify advancements, to discuss committed QX. for fundamentals a will mission, on of focused phase of our pursue

Unidentified Company Representative

Peng. Shen you, everyone. Thank Hello,

somewhat XXXX. quarter this improve both development. on policy Against and continue interest market boost operational Let me the the the and in the of give subdued. and quarter, industry for remain the side for you in market ever-growing with which the of In equity demand third optimize same demand business insurance reform existing insurance life no future most [indiscernible] continued growth, business our pension soft premium in the an offerings. the resurgence overall and health products operating At currency imply we insurance industry. business and in Meanwhile, our of of China insurance and earnings to and COVID-XX that remain our market the declined backdrop, protection-type the in improvement significant volatility update pressure, are the supply of time, efficiency, life first and X rep the health

customer business reflect new three channels industry continue explored relative industry industry. engaged in proactively growth profit product long-term have metrics operating high of spite achieve our and achieved We GAAP high of [ph] acquisition [indiscernible]. to to persistently net a the innovation the quality our to business We of the and quarter in key million in sustainable RMBXXX

progress our our insurance persistent user business of of thanks and performance the steady quarter through our the to of to upgrade. In first quality experiences. and model insurance continues improve forefront, business our you optimization walk will three, I on business products the on Now, profitability

steadily. their Our two. insurance either based first transaction and by analysis of revamped have quality. year products We processes the results policies X.X% policyholders improved increased our of contribution premiums long-term our from service quarter reviewed in of increased LTV and first number perception has The

existing protection model we further chain efficiency enhanced as In terms a the dealer, conversion and [indiscernible] have leader the refined our of overall time top across platform market the management, we [ph]. last satisfy To cost, sales [indiscernible]. operational

user such, either the efficiently, and the remains user on rate marketing of two. As continue At the was from hundreds increased to model lease and optimize and accurately for products rate. converted to by quality average. long-term above X.Xx sales in-house same the short-term LP we of industry increasing users the to insurance from more identify products algorithm The profile. based [indiscernible] time, repurchase on XX% either quarter And further number XX%

quarter-over-quarter the in Our of an across quarter-over-quarter our originated content of from state the addition Leveraging chain, long-term supply model a [indiscernible] has our XXX% this decreased and premiums sales improvement and our volume helped profit issuance video XXX% brilliant account directed decreased accounts video new static in capability we and and large our with by have both with of sales [indiscernible] our number A planning conversion three. interest invisible followers decrease total long-established experience. channel. quarter [ph]. achieved in customer capability the our This acquisition by acquired from this,

long-term per greater under acquire to to quarter external sales have We products. insurance drive have high-quality for the conversion providers lease partnership with cooperated leads XXX% more of the three, our which sales by crisis productivity lease. helped increased practical In this numbers

exploring quarter Second, under to operational [ph] standards quarter level the brokerage with customer promote the systems. three, to We retail, business of province units we of plan drive insurance up sustainable we plan capability developed lease business characteristics acquisition mainly adopts focused targeting for talent the management the In the customer which second two, growth. business. model channels new and dedicated set online In the on building and up insurance user their bundle. our

in facilitate soft major customers' platform user [ph]. experience. Compared video diversify our our previous and the and one-on-one retail format service generating last explore to and XX% We to acquisitions business customer quarter, units and efforts also the the bundle. our led and leading respectively enhance both and revenue a company trading increased helped have by side the user the These bridge to bidding

will creation online and continue to our capability. team strengthen our forward, we project content test Going

trading the we our commercial to year, the In needs empowers Insurance of each the our needs end lease. dedicated plan. size, can proven help Since quarter-over-quarter. protection customer system -- efforts for solutions scale family's off-line [indiscernible] have and The systems identify September, over and customized will tend based guide to We realistic of more Waterdrop to project is the billion test by we on on a can the profitability. and objective model. and and that three, than raising Diagnostic to or debt insurance a the account beginning of offline self-interest this our each gradually users customer-centric model [ph] of with that them family which launched provide XX% on develop buy the larger stepped RMBXXX then more quarter line team up insurance household the At corporate to [indiscernible] footprint double gross based up the protect and expenditure family professional,

[indiscernible] mortgage off-line our extended and including have business to Beijing We Shanghai.

established optimize our our to steadily Going early prospects. of our network expand the ecologies forward, we business portage and off-line will previous

products this of launched the medical with customers quarter, leukaemia. This series [indiscernible] medical series with we positions, release worked our Similarly, with in expand of user business showcase Third, insurer needs keeping additional co-develop expanding the quarter, declaration. concept of removing Blue of product series and group of a Ocean of illness third declarations, by we while insurance in critical leisure to sales. pre-existing quarter has Waterdrop predictive the our new generated of protection advising third of groups, different coverage products [ph], conditions the two, to risks the health product Despite credit handling which meet of production waiver for a patients innovation. customers diseases. To the control. protection partners mini in the launched further service business [indiscernible] in age to product our CI sizable The offerings for for customized our with with offers children we insurance issuance a recognition chronic our market worthwhile benefits the our with under a products

issuance low We third Meanwhile, premium [indiscernible] the the the from also the for increased younger our to these of product we of age customers' our to metrics [indiscernible] insurance our needs by XX% the our the interest generations. and designed our increased credit launched self-operated export various XX originating protection In meet customer ceiling quarter-over-quarter. under credited Fourth, prevailing for quarter-on-quarter. professional asset technology. continue interest capability product the improve environment, our [indiscernible] risk a enrich allocation that lower in XX% products quarter,

we the the assistance claims process. In claims all user our online various either the Empowered assistance services whole assistance capability, X of addition of within our recalibrated, claim have to that claims by the our populations services prices, analysis digital abilities. results most upgraded which new launched and help Based have issues we our claims larger we into on optimize practices process best to upgraded integrated also claims interest whole launched process experience. [indiscernible] during handle

For example, service our of leverages the technology intelligent improve to optimal uploads. selling our OCR-based subtraction system equity business effectively

customer impact either to Issuance to our system business for concludes In claims customization demanding our assistant for our we business. insurance This the and to expertise product will recommendations service claim protection. uses a product on future, invest -- our more users. generate, innovate continue better my Our late try deliver our briefing on side

Now, Crowdfunding for business. let to for [indiscernible] me over update Medical an hand Recruitment Patient and our

Unidentified Company Representative

I like on our over our accumulated end medical patients would some compounding exceeding At helped donors business. QX, Thank you. million updates platform. XXX to of total share from create of million X.XX RMBXX.X billion the

our initiatives crowdfunding user new increase the our Transparency have we after remained medical control amounts to number fundraising fee. to each on and continue the of and transparency enhance operational implemented third for and to flows quarter, even the launched Our In efforts fund service stable related transparency a authenticity Operational Committee donation.

easily have by been information a fundraising other worked bank and resolved refined resulting internal an service and the on some the disclosure disclose fee as to of mines third-party the respect malicious fund suspects. closely the individuals, more will The growth executed needs payment our donation related payment in by cash Shandong statement such police phase much XX fraud each down funds charged, for When we expense platform traceable. pages. with how visual available by fundraising example, The on of case patient. has [ph] are crack the flow of fund and for in arrest also money, interest placed patient, we enhanced will to patient fundraising efforts For several both after on the Meanwhile, issue demand from fee resale.

most burden. cyberspace From network expected to in the of areas crowdfunding choose shared up what a But means caused universe injuries, it was the who Let joining remote Internet average networks regions help into [indiscernible] give me either treatment is efficiency activities Platform is media conference. to Crowdfunding Once the of of community Waterdrop people global they medical crisis millions bring less of of in of social the months. classic initiated in the When net integrated of mutual platform gaining for financial the encounter even health dozens are wide-ranging unfortunately that especially to which fundraising our heavy realized of perspective, in It's measures, funds. consecutive have which units, zero for countries financial various fiscal will by or in protection medical dilutive a the high notable facilitate work review malicious the utilize have external Medical realize they of often because values successfully by and securities. total users case several and thereby necessary the recognition. people

and recruitment XXX. patient of of than more clinical XX% our to patient bringing momentum, presents tower the third rate trials the with our including number For programs Q-on-Q business, growth high more quarter, than in patients [ph] clinical for XXX growth spectrum total

a and project and increase established This with initiated leading has international pharmaceutical us [indiscernible] to of initiated trials collaborated collaboration despite demonstrates companies pharmaceutical and of X has have of leading COVID recruitment the and number in long-term to patient project the with the worldwide recorded CROs. the than lockdowns to innovative number recruitment In we honored work strength XXX us China. on for quarter. year. launch non-centered In domestic platform in patients allowed the become expected partners in circling critical patient platform are number companies. CROs this more particularly, in clinical trial by in sales subsequently, XX its test The from by partner recruitment global the motivational next continued several volume the digital company, We awards patients China of exclusive and [indiscernible] to our implantation with unique companies, months, pharmaceutical pharmaceutical

technical update. excellent to it Yao industry. and up in let me reputation concludes over call Our build part helped new us has my discuss recruitment Hu digital an instrumental our position the to innovation and capability to This to patient turn the

Hu Yao

everyone. platforms. across to about Thank Hi, innovation quarter going you. our technology update important X third I'm talk

employee as only the chatbot a scenario. as voice features Our also ears virtual human-like insurance marketing and but not serves for mindset the of even our

and to chatbot one and chatbot. human. the X algorithms the adapt ability years is our optimization algorithms, of Recognition therefore regarding set users' identifications quarter, intentions. a accurately especially filtration First; just our enabling background technology, our that launched which of the noise, In for user like understand deployed third multi-centers improve We provides the to accuracy of Automatic recognize analyzing Speech [ph] to users we another responses, chatbot's which enhance ASR,

chatbot, additional minimizing our chatbot Second; with the while maximizing staff, of of of voice human-like with chatbot the mindset, experience control have and a dialogue tone our sales our enhancing improving time of and as at developed emulating our we the that the functionalities best our overall Meanwhile, on for estimation spiel speak and These which with advanced a sales it outbound more the selection users cloning of calling potential with conversion a we of proprietary dialog risk thereby disturbance sales the users plans most enable help users. to rates, top appropriate optimal the our conversion the user communicate our to technology also complaint the rate models and to alerts. voice equipped significantly. model, enables the have generation intelligent it of thereby smoothness

our AI to operations marketing through address our refine Second, intelligent I technologies. will efforts

one time reassignment the of Our AI-powered the scheduling X.X first allocation important the operations. leads. components calls in and first marketing of allocation we including module The Version time a the most system which number the AI-based functions, and enables more decision-making, which leads is system performed of sorting In to of follow-up quarter, of third including leads, machine lead intelligent flexibility performs matching. upgraded our of

our by back sales efficiency use AI XX% to conversion our have rates. improved select most the and with user significantly improved result, a ATL the compared time call As appropriate X.X. We Version experience

play our long-term Finally, in in we system X.X ATL rates and have our XX%. an to summary, reached system reassignment has also conversion is position. important of and applied around helped determine role AI products. stable matching In by efficient which enhance of making with for Version efficiency insurance to lead The the highly leads industry-leading our sales enhancing continues our AI-powered

medical discuss will our platform. algorithm I Next,

Our records out proprietary more efficiency, up extraction The algorithm in our improved for our with medical data has algorithm and significantly speed classification rate records of filling process. XX%. center makes medical our patient governance efficient implemented an accuracy about recruitment data medical

function In addition, insurance efficiency of capable In has the our That video than rolled AI-powered automatically, acquisition this significantly services create them in our claims. intelligent have improved we helping which more tools, customer means the Waterdrop access video customized original out we their verification generation enhanced our answering easily minutes, production of app. questions is video exclusive AI of brokers' empowering use algorithm our broker by XX marketing types quarter, to brand. can brokers Through personal production within this capabilities officially now them content.

capabilities developed Waterdrop activity of with strong interest to the greatly fundraising intermediaries maintaining requirements, integrated users' The This in control to of accuracy. of update high identifies But will mitigates them and all algorithmic platform. can risk control Crowdfunding control unauthorized potential [ph] businesses will intelligent model malicious but stamp give very risks. of provides risk X -- you and our into give also our risk better products the compliance degree examples TR platform's the have of you of not Finally, a helps out a unified upgraded recognize safeguard users, I platform. integrated the I recognition and algorithmic platform only support us its fundraising Medical know our on risk all an We our control with activity a application. we which right from the malicious beginning.

user information information personal We privacy, masking of our user protect exposure protections use additional you. mask third quarter we beyond gone uploaded duty to methods model avoid uploaded identify I provide privacy. order in Guang now to have to and protect to for will conventional information automatically and fulfill by in image our a upgraded public-facing units. to Thank our financial information hand discuss -- sensitive performance. contained to over Yang fundraising the to sensitive and above Second,

Guang Yang

I you, will third Hu walk financial for Thank XXXX. Hello, everyone. you our highlights now Yao. the through quarter of

the with information economic quarter-over-quarter our the on financial detailed on details we be the RMB primarily financial forward million into the release profitability, in meticulously external quarter-over-quarter XX% environment the increased our since insurance-related here strategy in performance basis. our of and brought in and reported income. Net refer go operational momentum third business the growth, numbers and profit-making XXXX. pursued reminded decreased be RMBXXX please we earnings have plan comparator which the to year operating I was further will have challenging to the a due revenue and as for withstanding Despite please consecutive X performance, to Before on by by the decrease both quarters phase X.X% year-over-year pandemic year-over-year slow that by high-quality quarter of

to million effective service third to operating to costs million a up operating as was XXXX. service due third decrease by offset costs Total and fees service primarily costs of plan expenses primarily cost as the expenses of charge from by research million XX% million down, related research personnel insurance of with G&A in costs compared the expenses RMBXX cost decrease year to expenses. quarter of R&D for share-based due million on million in by to decreased development RMBXX based professional RMBXXX in million aid The to marketing customer a operating control RMBX.X by to to break expenses. quarter-over-quarter and million the costs to basis, compensation costs and basis, year-over-year. On costs RMBX.X fees since crowdfunding-related third-party gross the XX% primarily increased RMBXX The third customer increase expenses XX%. it share-based with million of rental quarter and QX, decreased On year-over-year in since due remained we fee by decrease RMBXXX and mutual quarter expenses is RMBXXX and decrease RMBXXX outsourced in and due [ph] increased combined were XXXX. cost for and increase RMBXXX quarter-over-quarter the second the settlement quarter of marketing by a of outsourced stable April XXXX. increase compensation RMBXX of in RMBXX -- quarter-by-quarter due to decrease direct fees to RMBXXX And operating to and of development of year expenses the personnel of estimated of the to primarily decrease in XXXX. million started basis, by million of quarterly of million, professional final to termination the and quarter million second taken remained sales to and basis, XXXX XX% recording coverage million outsourced partially The marketing XX% million decrease year-over-year decreased service quarter-over-quarter million by To For expenses decrease last stable traffic compensation million due expenses, was in marketing RMBX.X million. expenses share-based and the by compared increase for which the XXXX. decreased personnel RMBXX channels a year-over-year second information compared service X costs. due a to On RMBX.X a XX% QX decrease measures a marketing On and XX% fees impact expenses year-over-year materially RMBXX.X operating of RMBXX in sales million XX%, to parties. and XXXX. increased personnel G&A RMBXX in crowdfunding in the and costs by

adjusted compared QX, loss of a XXXX. of RMBXXX GAAP over RMBXXX During illustrate X the of million profit an period for of of have discipline with achievement enhancement. a same net profit net million reported profit fiscal The RMBXXX we cost million the profit non-GAAP and we the U.S. quarters last and generated

XX, the and RMBXXX positive million, the from investing increased outflow. RMBX,XXX by September cash of we of and cash financing million XXXX, increase or As investment X% an flow quarter, generate short-term cash as equivalents of to [indiscernible] the our cash continue operating balance and end offset to

we non-GAAP turn guideline achieving profit have and business, will our the for reinforced our our continue instilling year a revenue again far, once But let's going forward, results. optimization. of in our cost So financial quality on now, in And it That's efforts our enhancing we XXXX. calculating to Q&A.

Operator

[Operator The Instructions] first with CICC. comes question [indiscernible] from today

Unidentified Analyst

This from CICC. [indiscernible] is

all, is, you the of results. question on congrats a me. plan First cash My sufficient noticed that what's for reserves. it? your We have looking at That's all for

Unidentified Company Representative

question. Thank the you for

and equivalents earlier, totaled September, cash cash billion. short-term investments our mentioned of RMBX.X and at as end think I the

to account into our third million RMBXXX positive quarter. taking sales the of were cash generate we even So inflow repurchase, able a in

strong evolving withstand us flow position cash Our positive strategic and put operating deliver ample to our goal environment. and external generate in cash very reserve view the our a to

a we maintain sustainable provided to that customed reserve. edge achieve competitive build revenues healthy and our to continue no working cash and and Meanwhile, have daily sufficient we amount we'll approximately reasonable development. our operations think I So and of medium to funds for long-term

in the our reserve with increased share total the million. approximately And the the market US$X.X of strong our cumulatively company. million X.X maximum ADS repurchase a We of X-year used consideration the expansion when to of back open the IPO, use implement we we to confidence our for corporate [ph]. bought million repurchase have funds based September, and since program. amount of share sustainable from growth I announced repurchased funds for on program think long-term our our shares own plan And incentive firstly, our we our which employees our USD value our will align will with and development, XX repurchase our to interest plan in

right think at investment consider strategic I will time. we the secondly,

advantage acquisition opportunities. among penetrate and funds servicing portion and centering The to around product the solid We our capability, the by will our innovation pursue strengthen the can and framework to synergies innovation segment investments created deeper the where industry strategic purpose technological of a innovation unique use will be of breakthroughs ecosystem industry. big formed super our -- in insurance in the At customer year, invest in sector, -- on our guidance our new this thereby, further relying come directives care and expanding we in will medical and entitling patient will the health care we in relationship established the technology analytics, data health the in space.

and an call our also made progress. by has industry our As the here becoming is remarkable patient recruitment and business gradually mentioned earlier CRO business

continue going to So amount industry. will medical we an appropriate and pursue allocate care opportunities funds innovation in to the health of forward,

So a new long initiatives term short and the run of in significant and we the that company. will new growth revenue profit not it the although help momentum but company inject the generate into new edge the create believe long-term may business the in competitive

I think questions. that's all for the

Operator

next The question Edwin comes CLSA. with from Liu

Edwin Liu

questions, X So here. opportunity to thanks for ask I have the questions

terms for trend? And the next and segment of finished revenue the guidance. provide profit it platform. the revenue and of quarter breakdown regarding of in management color provide can charge this can to started profit question the regarding a is any the year? it crowdfunding fee, where and Since my we and is Appreciate the full first one you just this on guidance if for year operating First net crowdfunding this service second

Unidentified Company Representative

the answer I'll question. question. the for first you Thank

help Our amount Crowdfunding of service this this fully seeked single started capital. fee a year, is its Waterdrop service operational cover of [indiscernible] and charging in part costs of for of with more fee and X% risk the with And April a has maximum up patients to Medical RMBX,XXX to a to subsidize [indiscernible]. platform

in after our So of started and million the charge our fundraising financial transparently fee fee, service the income fee. we Since April, also on as when report RMBXXX the regularly crowdfunding user stable has through communication around remained of platform our And other we fee service service number disclose generated end service the will the have September. our channels. in we revenue charging to of and cumulatively

of X.X% X% million, collectively were still the few from for during cases. fund some subsidizing risk a service in RMBXX of revenues For rate we around QX, are QX. patients for our The fees is because accounting the campaigns below

addition, risk platform IT and So crowdfunding the by company, are office our other our control in there cost [ph]. was and functions. operating middle million But also cost indirect [ph], owned including RMBXX for

the a fee cost. healthy sufficient very service the was remains overall, growth of platform cover But and on most to So our Waterdrop direct Crowdfunding Medical track. operating stable

the However, daily fee we to in for purpose to service not platform of did and profit users. maintain trust sustainably or operations benefit the for our intend its

track, is on make service that remain cost. Our future plans to cover the the unchanged and operational fee will

orderly crowdfunding development So an healthy platform we healthy in will continuously and our on manner. a the service scenarios keep and and more upgrade monetization type, explore steady

achieve set established We a this system and need will our strive think patients service the for the more for help to strong non-GAAP business of provide whole we for public. the to in establish talk premium health for I the profit, goal fundraising year, the of full And to advertising beginning profit XXXX. for year year the about at guidance

we for we QX Despite level improvements maintained the returned work have external established transformation basis QX, our and growth see profitability stabilized profit more each far, more quarter in have of factors. good continued net our our and achieved have Since billing with in we XXXX. year, year, our we healthy foundation to net earlier we to various gradually external path in a of performance. solid In the GAAP financial reached RMBXXX on profit and more a uncertainties, to against healthy the quarter-over-quarter. track last and revenue million. achieve So progress has strategic operating Since adjusting the have growth and this in

growth, foundation a entered and growth, healthier more sustainable of future phase business into solid more a with for have We development.

all of goal For the XXXX year achieved full the at hope I million your a the to full for our and net of plan questions. QX around year. profit maintain answers expect that outperforming RMBXXX the profit, in XXXX, the we set profitable we year beginning

Operator

question with next comes Sachs. Thomas from The Wang Goldman

Thomas Wang

on in third costs A operating the quick in question quarter. increase the

understand increase? to want what's So to I driving just try that

Unidentified Company Representative

million, the operating we to certain in to started certain service of marketing recording of due RMBXX year. to services cost April charge crowdfunding think costs cost the crowdfunding operating increase as direct was expenses switched this I since related from the of

to starting fourth increase we only didn't April were cover quarter. -- starting year, also, yes. we course, will And charge this Of the from so it

the That's We fees. crowdfunding dividend. service the will providing customer do and increase to Operator, cost on the question? related also the last mainly we have

Operator

we [Operator Liu do. America. with [ph] Yes, Bank comes Instructions] of The next Susie question from

Unidentified Analyst

there to is has future strategy please? competitive forward, is cities in And from And Liu Tier X the X about focused see or any are Susie on? [ph] America Bank strategy. X Tier below expansion been Tier which area cities? established is that of your My you a share business expand strategy, Waterdrop more advantage on We Securities. already and question details in but could you've going This

Unidentified Company Representative

Okay. consistent current about which than This cities. in is either interest with Talk of to second first now, and below our business more X is cities Right speaking. from expanding something tier Tier XX% [indiscernible] distribution. our is and about operation

in perspective the users X and industry. -- the user in cities, X an Tier we from absolute of advantage Tier So number have our

So and either have second X first expand cities, to the tier Tier the -- we to strategies.

the best our This based X patterns, the insurance survey the as with normal online diversified just and objective Tier can the to We X set launch agent business provide according the model, cities second Tier mainly also and provide professional base. the more needs such tier diagnose appropriate First, AB the customer works conditions of middle-class solutions. way, and help systems organization brokers first really on and in and model model we that interest business brokerage local and cities.

leverage Tier Second, to our continuously product in users customer our offerings diversified Tier lines X reach to product and design and we better X cities. will develop

collar our among to Tier to to deepen the have management. pay white our to will Tier which And concerns open working are you. and who [indiscernible] in all. -- emerging Tier and That's business marketed rates and This promotion among X Thank deeper our community brands and X we Third, going facilitate are expand which reach Tier cities and [indiscernible] user with in awareness X a in fourth customers cities. X a and if we big already features workers higher issue's customer will and recognition enhance acquisition. invest experience with in

Operator

call. now today's you Thank are We your participation conference. the in approaching the for end conference of

disconnect. may a now You day. Have good

Waterdrop (WDH) 6 Dec 222022 Q3 Earnings call transcript